Foreign Investment in US

U.S. TAX FOR FOREIGN INVESTORS AND NONRESIDENTS

For people who live outside the United States but earn income, invest, or own property here.

Nonresidents are taxed in the U.S. only on certain U.S. income — but that can include rental income, business profits, and gains on U.S. real estate. Withholding often happens automatically, and filing a return is how you claim back what was over-withheld. At Victoria Bogdanovich CPA, we prepare U.S. returns for nonresidents and foreign investors.

Who this is for

• Foreign individuals who own rental property in Austin or elsewhere in the U.S.
• Nonresidents selling U.S. real estate
• Foreign investors with U.S. brokerage accounts or partnership K-1s
• People who worked in the U.S. for part of the year and then left

What we handle

• Form 1040-NR — the U.S. return for nonresident individuals
• U.S. rental property — electing to be taxed on net rental income instead of gross rents
• Real estate sales — FIRPTA withholding, and claiming back over-withheld amounts
• Tax treaty benefits — and the forms needed to claim them
• Withholding forms — W-8BEN and related forms for banks, brokers, and tenants
• Partnership income — K-1s and partnership withholding for foreign partners
• State returns where the property or business is located

Common mistakes we see

Paying tax on gross rent. Without the right election and return, rental income can be taxed on the full rent with no deduction for expenses.

Not filing after a sale. When a U.S. property is sold, part of the price is usually withheld. Filing a return is often the only way to get the excess back.

Missing treaty benefits. A treaty may reduce U.S. tax, but only if it’s claimed correctly.

How it works

1. Check your fit — about 1 minute. Answer a few questions and see your starting fee.
2. Create your client portal account and complete our Client Application.
3. Meet with us — free Tax Discovery Zoom meeting. Upload your last two years of returns at least 24 hours before the meeting so we can discuss an estimated fee range on the call.
4. Receive your engagement package with your estimated fee and scope of work. Work begins once you sign.

Starting price

Nonresident returns start at $3,500. The final fee depends on your U.S. income and property. Your engagement package sets out your estimated fee and what it covers. Work outside that scope is billed separately.

See your starting fee

Frequently asked questions

I don’t live in the U.S. Do I need a U.S. tax ID?
Usually, if you have U.S. income to report. We’ll tell you which ID you need and help with the application.

I’m selling my Austin rental. What should I know?
Talk to us before closing if you can. We’ll estimate the tax and the withholding and explain how to recover any excess.

Do I need to file in Texas?
Texas has no personal income tax, but properties or businesses in other states may require state returns.

See also Foreign-Owned U.S. Businesses.

Ready to see where you fit? Take the 1-minute fit check or see our pricing and how it works.